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$200, $400 Oil by end of 2009, and 2010-12, respectively


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Ker

 

Have been very interested by your posts and the accuracy of many of your predictions. What ETF or product do you use to short crude?

 

Lev

 

 

thank you.

 

well market went higher than my stop was, 48.50 doesn't look to me like a top resistance level , 49 is. not sure if they toped or not, but on break of 45.50 downtrend would be confirmed

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http://ftalphaville.ft.com/blog/2009/01/27...-into-oil-etfs/

 

Great graph in the link worth a look.

 

‘Unprecedented’ inflows into oil ETFs

Posted by Izabella Kaminska on Jan 27 08:52.

 

Goldman Sachs’ energy analysts are the latest to warn of the unprecedented inflows into oil ETFs in their most recent research note. In fact they attribute the small spike in oil prices in the last few weeks largely to this, a US cold snap, storage demand for products, fuel switching and a spike in refining margins.

 

Most interestingly, however, the Goldman oil bulls believe the spike is only transient as most of these factors are likely to reverse in the near term, hence they do not believe it represents the impending end to the current bear market (which they are still expecting before the end of the year).

 

The above certainly fits their view that the new bullish cycle will only reappear when the contango flattens out, in itself only likely to happen when most spare production (most likely from non-Opec producers) is brought offline.

 

Needless to say their warning about ETFs is particularly interesting. They believe it is only now that most of the investors that have piled into oil funds thinking the commodity was cheap will begin to realise the losses they are experiencing on the “negative roll“. As Goldman explain (our emphasis):

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hehe. i know. and this will prop up bonds to new highs. i am short dow since yesterdays close, and long bond, they bottomed today, and will rally tomorrow

 

I shorted the Dow last night too. Great minds think alike :)

 

I thought today’s unemployment figures would have taken 300 off the Dow today but it hasn’t done.

 

There’s a GDP estimate out tomorrow. It should be horrific. Might take 500 off the Dow.

 

My target is 7,500. with stop loss at 9,100

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http://www.telegraph.co.uk/finance/finance...-the-curve.html

 

On the dubious side - just be careful it's by Ambrose Evans Pritchard

 

 

WEF 2009: BP sees further crash in oil demand, OPEC behind the curve

The worldwide recession is likely cause a far deeper slump in demand for crude oil this year than recognized so far by the OPEC cartel, according to BP's chief executive Tony Hayward.

 

 

"Things depend entirely on the global economy and success in resolving the banking crisis, but the pessimistic view is that there will be no growth in the world this year. Demand loss of perhaps 1m barrels per day is likely," he said, addressing an energy panel at the World Economic Forum in Davos.

 

Abdalla El Badri, OPEC's secretary-general, said the group of oil exporters is expecting further "demand destruction" of just 200,000 barrels per day this year.

 

If Mr Hayward is right, the supply glut on the market will almost certainly push oil prices even lower in coming months – perhaps below $30, as Goldman Sachs and Merrill Lynch both now expect.

 

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If Mr Hayward is right, the supply glut on the market will almost certainly push oil prices even lower in coming months – perhaps below $30, as Goldman Sachs and Merrill Lynch both now expect.

 

yes, it is going to 25 and then we will see if it goes to 17

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I'm staying away from oil altogether right now. That dead cat scared me :(

 

a little change in plans, but after we test the highs, we should go to 25 and then posibly to 18:

http://i430.photobucket.com/albums/qq30/ke...l-4hrs-0207.png

http://i430.photobucket.com/albums/qq30/ke...weekly-0207.png

http://i430.photobucket.com/albums/qq30/ke...onthly-0207.png

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Enjoy low oil prices while you can: guru

Barry Critchley, Financial Post

Published: Saturday, February 07, 2009

 

Henry Groppe, founder of Houston-based Groppe, Long & Littell, is 83 years old, a vegetarian and has been a forecaster in the oil and gas business since 1955. And he is not afraid to go against the conventional wisdom. One year back he predicted the oil price would collapse in the second half of the year -- and not reach the much talked-about price of US$200 a barrel.

 

Now Groppe, a special advisor to the Toronto-based Middlefield group of companies, has done his analysis and concluded that between now and year end the price of oil will double. If that forecast pans out, oil will hit US$80 a barrel, or more than double what others are predicting. His advice to consumers: Enjoy the current low gas prices, because they won't last for much longer.

http://www.financialpost.com/analysis/stor...7f-3a43db9318c8

 

 

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pathetic rally. not sure where-to now, looks like inside day, but down is likely

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Ker - These are my thoughts. What do you think?

 

I've placed a buy order at 38, target = 41, stoploss = 36. Don't worry about influencing me, I’m not going to change my mind. I can afford my potential losses :) **

 

oil20090210gt1.jpg

 

** EDIT: cos i've made a killing on the Dow today :lol:

 

EDIT: Those are 1 hour candles. Ignore the time frame, I think the bottom will be at 15:00 tommorrow

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